Samsung Electronics has appointed Geesung Choi as its new CEO, as part of an organisational restructuring aimed to increase operating efficiencies and strengthen the independence of the company’s business divisions.
Geesung Choi was previously president and head of the company’s digital media and communications business. His previous positions include president of the telecommunications networks business, and president of the digital media business.
Samsung also enhanced its C-suite by appointing Jay Lee to the newly created position of chief operating officer and Ju-Hwa Yoon as chief financial officer. Yoon-woo Lee, currently vice chairman and CEO, continues only as chairman of the board of directors.
Prior to this, Lee’s positions include chief customer officer and vice president-strategic planning. Previous positions held by Mr Yoon include head of the management support team.
The heads of all Samsung Electronics business divisions report to Choi and the C-suite. The new C-suite is expected to provide more efficient management team, consistent with global business models.
In order to establish greater autonomy at the operating level, the company said that it will adopt a company system in which each business unit is managed similarly to a stand-alone company, with its own president and CFO.
Outside Korea, subsidiaries responsible for components such as semiconductors and LCD panels will continue to operate as fully independent entities separate from Samsung’s IT and consumer electronics subsidiaries, the company said.
Previously Samsung had 10 operating divisions organised into two principal businesses, digital media and communications and device solutions. The reorganisation replaces the two-business structure with seven independent companies under a single corporate entity and unified C-suite.
While creating greater autonomy at the operating level, the benefits of the new structure also include reducing the company’s decision-making hierarchy from three to two stages and supporting stronger focus and speed of execution in business and investment strategy, Samsung said.
Choi, the incoming CEO, said: “Samsung has recovered well over the past year, thanks to Yoon-woo Lee’s leadership and a measured response to the global financial crisis. With this forward momentum, we believe now is the time for us to make these important organisational changes to prepare for the challenges and opportunities ahead.”
